Question

Jacky borrows Rs. $2000$ from the bank. The Principal of the loan is _____.

• A. Rs. $1000$
• B. Rs. $2000$
• C. Rs. $3000$
• D. Rs. $4000$

Answer 1

The correct option is B Rs. $2000$

Jacky borrows Rs. $2000$ from the bank. The Principal of the loan is Rs. $2000.$

Principal is a term that has several financial meanings. The most commonly used refers to the original sum of money borrowed in a loan, or put into an investment. Similar to the former, it can also refer to the face value of a bond.

The amount borrowed, or the part of the amount borrowed which remains unpaid (excluding interest). here also called principal amount.